COM 343
CHAPTER TEN
BUYING
&
DISPOSITION
SITUATIONAL EFFECTS
ON
CONSUMER BEHAVIOUR ASSOCIATED WITH
THE PURCHASE ENVIRONMENT
ANTECEDENT STATES
Your cognitive, affective
& physical pre-purchase disposition
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TWO DIMENSIONS OF THE ENVIRONMENT
SOCIAL & PHYSICAL
SOCIAL ENVIRONMENT
ALL INTERACTIONS BETWEEN AND AMONGST PEOPLE
CAN BE BOTH
DIRECT AND VICARIOUS
AS WELL AS:
MICRO (FAMILY, FRIENDS)
AND
MACRO (CULTURE, SUBCULTURE AND SOCIAL CLASS)
THE SOCIAL ENVIRONMENT
HAS POWERFUL INFLUENCES ON
THE VALUES, BELIEFS, EMOTIONS AND BEHAVIOURS
OF INDIVIDUAL CONSUMERS
AND
THEIR MEANS-END CHAINS’.
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SOCIAL ENVIRONMENT
CONTINUED..
CONSUMERS IN DIFFERENT SUBCULTURES MAY HAVE
THE SAME CULTURAL VALUE BUT REFLECT IT IN DIFFERENT
WAYS
Eg.
VALUE: SENSE OF ACHIEVEMENT
1- A RURAL VALUE SET: AGRICULTURAL
COLLEGE, GOOD FARMER
2- AN URBAN VALUE SET: LAW SCHOOL, GOOD
LAWYER
DIFFERENT MEANS CAN BE USED
TO ACHIEVE THE SAME ENDS.
PHYSICAL ENVIRONMENT
ALL NON-HUMAN, PHYSICAL ASPECTS OF THE EXTERNAL
WORLD IN WHICH BEHAVIOUR OCCURS.
SPATIAL DIMENSION
(THINGS THAT ARE TANGIBLE)
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NON-SPATIAL DIMENSION
(ALL IMPACT CONSUMER BEHAVIOUR)
1-
TIME - SEASON, MONTH, WEEK, DAY, HOUR
2-
WEATHER - AFFECTS MOODS, PURCHASE
PATTERNS AND USAGE PATTERNS
3-
LIGHTING - AFFECTS MOODS, ANXIETY LEVELS,
LEVEL OF ATTENTION
4-
COLOUR - VARIETY OF PHYSICAL AND
PSYCHOLOGICAL EFFECTS
DRAWN TO WARM COLOURS BUT FIND WARM
COLOURED ENVIRONMENTS UNPLEASANT
COOL COLOURS DON'T DRAW CONSUMERS BUT WERE RATED
AS PLEASANT
MARKETING IMPLICATIONS
EVERY MARKETING STRATEGY CHANGES
SOME ASPECT OF A CONSUMER’S ENVIRONMENT
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THE RETAIL ENVIRONMENT
STORE LAYOUTS
GRID OR FREE FLOW
 GRID (GROCERY) - DIRECTS CONSUMER
TRAFFIC
 FREE FLOW (APPAREL) - RELAXED
SHOPPING, BROWSING, IMPULSE
PURCHASES
SIGNAGE
 COMMUNICATE PRODUCT BENEFITS (ATTRIBUTES)
PRICE
SHELF SPACE, IN-STORE DISPLAYS
 INCREMENTAL SALES
 DISPLAYS OUT PERFORM MORE SHELF SPACE
 A SECOND PURCHASE OPPORTUNITY
MUSIC
 INFLUENCES AFFECT, COGNITION & BEHAVIOUR
 + 38.2% SALES SLOW - TEMPO
 FAST FOOD / FAST MUSIC
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“SITUATIONS”
A SITUATION MAY BE DESCRIBED AS
A SEQUENCE OF
GOAL DIRECTED BEHAVIOURS,
ALONG WITH
AFFECTIVE AND COGNITIVE RESPONSES
AND
THE VARIOUS ENVIRONMENTS
IN WHICH THEY OCCUR.
EG. CD SHOPPING AT THE MALL
SITUATIONS can
 VARY IN COMPLEXITY
FROM BY A STAMP TO BUYING A HOUSE
 BE RECURRING
BUYING GAS, BEER
WITH REPETITION:
DEVELOPED SCHEMAS AND SCRIPTS MAY BE ACTIVATED
FROM MEMORY
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ANALYZING SITUATIONS
1. FIRST DETERMINE THE
MAJOR GOALS OF YOUR
TARGET CUSTOMERS THAT DEFINE THE SITUATION
2. IDENTIFY THE KEY
ASPECTS OF THE SOCIAL AND
PHYSICAL ENVIRONMENT
3. ASSESS CONSUMERS AFFECTIVE
AND
COGNITIVE RESPONSES TO SAME
4. IDENTIFY THE KEY PRODUCT RELATED
BEHAVIOURS
GATHER INFO THRU OBSERVATION AND/OR INTERVIEWS
FIVE COMMON
CONSUMER SITUATIONS
1) INFORMATION ACQUISITION
SITUATION
 CAN BE ACCIDENTAL OR INTENTIONAL
 BOTH SOCIAL (FRIENDS) AND PHYSICAL (MAGAZINES)
TWO IMPORTANT IN-STORE BEHAVIOURS
WHERE 66% OF CONSUMERS MAKE THEIR DECISION
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1-
INFORMATION CONTACT P.O.S.
2-
COMMUNICATION - HOW THE SALES PERSON ACTS
2) SHOPPING SITUATION
 PHYSICAL, SPATIAL AND SOCIAL ASPECTS OF
THE ENVIRONMENT
 THAT IMPACT ON
 CONSUMERS AFFECTIVE, COGNITIVE AND
BEHAVIOUR DISPOSITIONS.
 Designed to:
1- GET CONSUMERS TO COME TO YOUR MALL
2- GET CONSUMERS TO COME TO YOUR STORE
3- GET CONSUMERS TO COME TO YOUR AISLE
4- GET CONSUMERS TO COME TO YOUR SHELF
5- GET CONSUMERS TO SEE ME
6- GET CONSUMERS TO PICK ME UP
3) PURCHASING SITUATION
 CAN BE REMOVED FROM THE SHOPPING
ENVIRONMENT
 KEY - MAKE IT CONSUMER FRIENDLY AND EASY TO
ACCESS FUNDS AND CONCLUDE THE FINAL
TRANSACTION
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4) CONSUMPTION SITUATION
INCLUDES THE SOCIAL AND PHYSICAL ASPECTS OF
THE ENVIRONMENT WHERE CONSUMPTION
OCCURS
 ON PREMISE (MARKETER CONTROLS)
DISNEYLAND
 AT HOME (CONSUMER CONTROLS)
5) DISPOSITION SITUATIONS
 DISPOSAL OF PRODUCTS
 FROM RECYCLE BINS TO USED CAR LOTS AND
VALU VILLAGE
Marketing Strategic Objectives
THE MARKETER WANTS TO
STIMULATE
FACILITATE
REINFORCE
THE DESIRED BEHAVIOUR
THROUGH
environmental
modification and manipulation
COM 343…9
The essence of successful product strategy is
to manage consumer product relationships
To create exchanges that satisfy.
CONSUMER SATISFACTION
 Is the relationship between pre-purchase
expectations & post-purchase perceptions.
 The difference or ‘gap’ between the two is called
disconfirmation. Can be negative or positive.
CONSUMER DISSATISFACTION
&
COMPLAINT BEHAVIOUR
 Those who complain when dissatisfied tend to be
from more upscale socioeconomic groups.
 Personality characteristics (self-confidence,
dogmatism, etc.) Correlate only weakly to
complaint behaviour.
 Level of dissatisfaction directly correlates to the
level of complaint behaviour.
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 The less the responsibility for the dissatisfaction
(usage error) the more enthused the complaint
behaviour.
 The more positive the perception that a retailer’s
responsiveness is constructive the more likely the
complaint process will be initiated.
THE RETAIL STORE’S ENVIRONMENT
STORE IMAGE
WHAT CONSUMERS “THINK” (ATTITUDES) ABOUT A STORE’S
ATTRIBUTES:
 MERCHANDISE
 SERVICE CLIENTELE
 PHYSICAL FACILITIES
 PROMOTIONS
 CONVENIENCE
 STORE ATMOSPHERE
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STORE ATMOSPHERE:
 CONSEQUENT ‘IN-STORE’ EMOTIONAL STATES (AFFECT)
CREATED FROM ENVIRONMENTAL STIMULI
 CAUSING APPROACH OR AVOIDANCE
BEHAVIOURS
a. PHYSICAL: STAY OR LEAVE – PATRONAGE
b. EXPLORATORY: IN-STORE SEARCHING
c. COMMUNICATION: INTERACTIONS WITH STAFF
/ PEERS
d. PERFORMANCE & SATISFACTION:
REINFORCEMENT OF EXCHANGE BEHAVIOURS.
ADDITIONALLY, CONSUMERS CAN BE SAID TO EXPERIENCE:
 PLEASURE (POSITIVE FEELING)
 AROUSAL (INTEREST)
 DOMINANCE (THREAT LEVEL)
STORE – RELATED BEHAVIOUR
STORE CONTACT
 FROM LOCATING, TRAVELING TO & ENTERING
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 LOCATION BASED ON FACILITATING THIS PROCESS
FOR THE TARGET GROUPS.
STORE LOYALTY
 REPEAT PATRONAGE
 FREQUENCY PROMOTIONS: ZELLER’S POINTS
ONE GROCERY CONSUMER:
~ $3,100 ANNUALLY
STORE LOCATION
 LONGER TERM FINANCIAL COMMITMENT
 REQUIRES LOTS OF R&D (PRESENT & FUTURE)
o TRAFFIC PATTERNS
o LOCAL SOCIO-ECONOMIC
o DEMOGRAPHICS
o PARKING
o ACCESSIBILITY (TO & FROM)
STORE LAYOUT
 TRAFFIC FLOW / SHOPPING PATTERN CONTROL
 GRID (DIRECTIONAL) VS. FREE-FORM (AMBLING)
 E.G. 85% OF ALL GROCERY SHOPPERS VISIT THE:
DAIRY, PRODUCE & MEAT SECTIONS
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IN-STORE STIMULI
SIGNAGE (POS, POP)
 A PRICE SIGN STRONGEST INFLUENCER WHEN
PRODUCT IS ON SALE
 PRODUCT BENEFIT SIGN INCREASES TAKE-AWAY &
MAKES PRICE SIGNAGE MORE EFFECTIVE WITH
BENEFIT SIGNAGE
 IN-STORE REDUCED PRICE SIGNAGE OFTEN MORE
EFFECTIVE THAN NEWSPAPER
COLOUR
 CONSUMERS DRAWN TO WARM COLOURS RED
& YELLOW BUT DON’T WANT TO STAY (FIRE)
 LINGER IN COOL, TRANQUIL COLOURS
SHELF SPACE & DISPLAYS
 INCREASE SHELF SPACE INCREASE SALES
 ADD A DISPLAY & SALES INCREASE EVEN MORE
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MUSIC
 SLOW TEMPO LONGER IN-STORE TIME (SALES +
38 %)
 FAST TEMPO SHORTER IN-STORE TIME (LUNCH
HOUR)
SCENT
 FLORAL, SPICES, WOODS, CITRUS & MINT CAN
HAVE POSITIVE AFFECTS
 GET IT RIGHT!
ASPECTS OF PRODUCT CONTACT
(IN A RETAIL STORE ENVIRONMENT)
 DEGREE OF BRAND LOYALTY IS DECLINING
 VARIETY SEEKING IS INCREASING
 BRAND EXTENSIONS ATTEMPT TO SATISFY
CONSUMER’S NEED FOR VARIETY WITHOUT
HAVING TO SWITCH
 USAGE RATE - FROM LIGHT TO HEAVY
 IDENTIFY & PRIORITIZE TARGET SEGMENTS BASED
ON USAGE & BRAND LOYALTY FACTORS TO
DEVELOP MARKETING STRATEGIES.
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o BRAND LOYAL / HEAVY USER
o BRAND LOYAL / LIGHT USER
o VARIETY-SEEKING / HEAVY USERS
o VARIETY-SEEKING / LIGHT USERS
PRODUCT ENVIRONMENT
PRODUCT RELATED STIMULI THAT ARE DESIGNED TO
BE ATTENDED TO & COMPREHENDED BY CONSUMERS
PRODUCT ATTRIBUTES
 FUNCTIONAL & PERCEPTUAL
PACKAGING
 PROTECT
 ECONOMICAL
 CONVENIENT
 COMMUNICATION
PACKAGE SIZE
 INFLUENCE USAGE BEHAVIOUR
 MORE FOR LESS
PACKAGE COLOURS / GRAPHICS
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 CAN REINFORCE STRATEGIC CONCEPTS (BRAND IMAGE,
ETC.)
NONSTORE BUYING
&
CONSUMER BEHAVIOUR
CONSUMER PURCHASE MODES
1. CATALOGUE / DIRECT MAIL
 CONVENIENCE
 SELECTION
 NO TANGIBLE ELEMENT
 HIGHER PRICE
 SHIPPING
 DELAYED GRATIFICATION
 RETURNS
2. TELEVISION HOME SHOPPING
 CONVENIENCE
 NO SELECTION
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 NO TANGIBLE ELEMENT
 SHIPPING DELAYED GRATIFICATION
 QUESTIONABLE IMAGE
3. VENDING MACHINES
 CONVENIENCE
 HIGHER PRICE
 RELIABILITY?
4. DIRECT SALES PURCHASE
 FACE-TO-FACE ~ TELEPHONE
 COSMETICS, FRAGRANCES, ACCESSORIES
 HIGHER PRICE
 PEER PRESSURE
 DELAYED GRATIFICATION
5. ELECTRONIC EXCHANGES
A.K.A.
INTERNET
 ACCESS
 CONVENIENCE
 SELECTION
 COST
 NO TANGIBLE ELEMENT
 DELAYED GRATIFICATION
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